The RIA
Roadmap
Your essential guide
to making the transition
2017 edition
Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Your guide to
making the transition
to an independent
Registered Investment
Advisor (RIA) firm
You have worked hard to build a successful
business. You know your clients and how their
needs are evolving. You may have outgrown your
current model and are ready to take your business
to a new level—one that gives you the freedom to
act on your unique vision.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
With more than 30 years of
experience working with—and
listening to—advisors as they
transition to the RIA model,
Schwab Advisor ServicesTM has
developed The RIA Roadmap:
Your Essential Guide to
Making the Transition with
you in mind. It presents key
steps to help you chart your
path toward joining or running
an independent RIA firm
and serving your clients your
way—all backed by our expert
guidance when you need it.
Office
setup
Account
conversion
Ongoing
support
Advisors work in many different models, from wirehouse firms to
independent broker-dealer affiliates. Depending on your current
model, you may have experienced limitations—in your technology
platform, marketing options, or communication channels.
Those are some of the reasons why more and more financial
professionals are choosing the RIA model. Independent RIAs
have the potential to keep more of what they earn, build equity
in their businesses, and set up their firms for continued growth.
Most RIAs provide services such as personalized advice, while
customizing portfolios to fit specific client needs. They also have
the freedom to determine everything from their compensation
structure and technology platform to building their firm’s brand.
The advantages are clear, but the prospect of making
the transition can seem daunting at times. What about
your existing client relationships? What are the legal and
compliance responsibilities of becoming an RIA? How will your
compensation change?
Advisors continue to make the RIA move
28%–
50%
Growing client base
Increased AUM
RIA firms grew significantly from
2011 to 2015—adding between 28%
and 50% more clients at the median.
Average client size increased by 22%
at the median over the same period.1
In fact, more than half of RIAs that
participated in Schwab’s 2016 RIA
Benchmarking Study doubled their assets
under management (AUM), and the top
25% of firms have doubled their revenues
since the market lows of 2009.2
3.6%
Asset market share growth
Independent RIAs are predicted to
increase their asset market share by
3.6% by the end of 2020 compared with
2015. Those that are dually registered
are predicted to grow by 1.3% over the
same period.4
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57%
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186%
Greater merger and
acquisition value
The total transaction value of
mergers and acquisitions involving
RIA firms increased by 186% to
$135.5 billion in AUM in 2016,
compared with $47.4 billion in 2014.3
The fiduciary standard: RIA firms are registered with the U.S. Securities
and Exchange Commission (SEC) or state securities regulators and are
held to the fiduciary standard by the Investment Advisers Act of 1940
as well as similar state laws. Firms are required by law to act in the best
interests of their clients and to file annual Form ADVs describing their
business practices and client communications to help ensure compliance
with the standard.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Fortunately, the RIA channel has matured
dramatically in recent years, as thousands
of advisors have successfully navigated the
well‑worn path to independence. The transition
no longer requires a leap of faith. And the
support for RIAs is more robust than ever before.
Regardless of the unique path you choose, you can
leverage that support to help with your transition.
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Account
conversion
Ongoing
support
Whether you need support on a national level or
right in your own backyard, Schwab Advisor Services,
as the industry leader, provides exceptional service
before, during, and after your transition.
We’ve designed this guide to be a comprehensive
tool to help all types of advisors move toward greater
independence. Of course, no two transitions are
exactly alike. For some advisors who have limited
independence today or are looking to join a firm, some
of the steps discussed here may not be relevant;
we will note those steps throughout the guide.
But reading through each step will help you gain a
more comprehensive understanding of the process
and be prepared to consult your Schwab Business
Development Officer (BDO) to craft your own plan.
Becoming an independent RIA doesn’t mean you
have to go it alone. At Schwab Advisor ServicesTM,
we have helped more advisors transition to
the RIA model than any other custodian in the
industry. With an average tenure of more than
10 years and over $210 billion AUM transferred
in total,5 our team understands the transition
process and can provide guidance along your
path to becoming an independent advisor, sharing
insights and resources every step of the way.
<
Office
setup
Contact a Schwab BDO online
at advisorservices.schwab.com
or at 877-687-4085 to learn more >
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Transition overview
The interactive timeline below outlines key steps in transitioning to the RIA model. They are grouped
within four major topic areas, along with a two-phase approach (plan and execute) to tackling each area.
Click on any topic area, and navigate to more details within that section of the guide.
Define your
business
strategy >
p. 7
Plan
•Identify goals and vision
Set up
your office >
Convert your
accounts >
p. 19
p. 23
•Speak with legal
counsel
•Define technology
needs
•Understand
custodian’s role
•Form an exit strategy
•Search for office space*
•Research advisory
models
•Research Broker
Protocol
•List supplies and
furnishings*
•Complete client asset
review
•Complete business plan
•Choose entity structure*
•Develop marketing
strategy
•Determine licensing
and registration
•Cross-check financial
strategy
•Protect business with
insurance
•Select and implement
technology
•Resign and send
announcements
•Carry out business plan
•Create legal and
compliance program
•Choose your space, and
set a move-in date*
•Prepare client packets
•File disclosure
documents and forms
•Equip your office*
•Complete pro forma
analysis
Execute
Prepare for
legal and
compliance >
p. 14
•Create marketing
materials
•Choose resignation
date
•Begin training
•Transfer clients’
assets
•Draft client agreements
*
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Depending on the level of independence you have today, this step may not be relevant.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Your Schwab Advisor
Services team
The decision to become an RIA starts with you, but you’ll have an entire team working on your behalf
before, during, and after the transition. Here are some of the key Schwab Advisor ServicesTM personnel
who will assist you along the way.
Business
Development Officer
Schwab Advisor
Transition Services®
Your BDO is the quarterback
of your transition team. He or
she will listen to your goals,
help evaluate your situation,
and guide your transition
from start to finish. As a
facilitator of the process,
your BDO can put you in
touch with subject-matter
experts (both from Schwab
Advisor Services and from
third-party vendors) to
help you make important
decisions about setting up
your business.
Your Schwab Advisor
Transition Services team
helps streamline the process
to transfer client accounts
and create a plan that’s right
for you. They’re responsible
for performing complete and
accurate asset transfers with
the care and precision you
deserve, training your team
on the Schwab platform,
and getting your firm up and
running fast—so you can focus
on serving your clients and
growing your business.
Technology engineer
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Schwab Relationship
Manager
Your Schwab Relationship
Manager is dedicated to
helping you meet your ongoing
needs and goals as you look
to grow your business after
making the transition. He or
she will be your day-to-day
point person and advocate for
helping you take advantage
of everything Schwab Advisor
Services has to offer RIAs—
such as products, services,
and strategic consultation—to
keep your firm ahead of the
curve and the competition.
To start the conversation
about your transition,
contact a BDO online at
advisorservices.schwab.com
or at 877-687-4085 >
In addition, your BDO can connect you with
reliable and trusted third-party specialists,
including legal and compliance counsel, as well as
recommend marketing and branding agencies and
more. Schwab Advisor Services develops teams
based on your specific needs, so yours may look
slightly different from what’s presented here.
<
Your technology engineer
is committed to finding
the right vendor-agnostic
technology solutions to
best serve you and your
clients. When you explain
your intended business
model, the engineer will
help determine your needs,
research solutions, and
present demos of the
top solutions for your firm
to consider.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Define your business strategy
Plan
Define your
business
strategy
As an RIA, you have the ability to define
your company on your terms. That
freedom is exciting and inspiring, but it
can also leave you wondering where to
turn first. When you’re ready to tackle
your transition, start by making a strategic
plan based on your business goals with
the help of your Business Development
Officer (BDO).
“No matter how high up you are in these larger
broker-dealer firms, you’re still an employee. The
RIA space was compelling to us because we felt like
we were building something—we owned it.”
Consider your existing clients, your strengths, your
desired future, and your competition and market
landscape. This will help you define your vision and
develop a plan for bringing that vision to life.
We’ve created a Field Guide to help you capture your
initial ideas about whether the RIA model is right for you.
Contact your BDO for a copy of the Field Guide.
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View the Compass Wealth Management video >
7
—Robert Amato,
Compass Wealth Management
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Define your business strategy
Plan
Identify your goals and vision
Before you make a move, your
Schwab Advisor ServicesTM team
will get to know you and your
business objectives by asking
thorough questions and providing
support as you develop your plan.
All the decisions you make should be rooted in your
firm’s value proposition and business objectives.
Before you get started, you should have an idea of
where you are going. That direction may evolve as
you continue your research, but it’s important to
begin with a target in mind.
Find out 10 key tips for making the RIA transition.
View the article >
Complete a pro forma analysis
Your BDO will guide you through this exercise.
When you assess how your current earnings and
expenses would shift in the RIA model, you can
begin to get a sense of the economic outlook for
your new firm. You can also start to plan for the
costs associated with the transition.
View Chris Baker’s “Plan Your Move” video >
See how Chris Baker of Baker & Associates planned her move to
become an independent RIA, with Schwab’s support.
“This is where it matters. We put the energy in
and make sure we take all the responsibility that
we possibly can, so that when the time comes,
she’s got every confidence in the world to focus on
meeting with her clients and feeling very confident
that she’s making the right decision.”
Use the RIA Economic Discovery Tool to get started.
Based on insights from the experiences of more than
7,000 advisors as of 2017, the tool charts your potential
income, profit, and business equity.
Access the tool >
Ranks highest
year-over-year
—Adam Schwartz, Schwab BDO
working with Baker & Associates
With more recommendations from RIAs than any other
custodian, Schwab Advisor Services ranks highest year-overyear—among advisors of all sizes—when it comes to service.6
We provide support at every step, from optimizing operations
to building an efficient business.
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Why
RIA
Where
to start
Business
strategy
Office
setup
Legal and
compliance
Account
conversion
Ongoing
support
Define your business strategy
Plan
“Our Business Development Officer
with Schwab Advisor Services laid out
a roadmap that was scheduled out by
week in terms of all the critical things
that needed to be done—like technology,
finding real estate, working with vendors
for marketing, and designing a website.”
Complete your business plan
You’ve solidified your vision. Now you can create a
detailed plan for your firm. It’s important to define
your mission statement and investment philosophy.
Here are some other items to get in writing:
• Investment process, management bios, and
launch date
—Trevor Callan, Callan Capital
• Your revenue projections, pricing strategy,
and transition financing plan
Research various
advisory models
• Your organizational structure and technology
and operations plans
Advisors have more options available for
independence than ever before. Perhaps you are
an entrepreneur who enjoys the idea of building
your business and brand from the ground up.
Or you may prefer the freedom to focus on your
clients without having to deal with office and
technology setup.
Your BDO will be there to guide you during every
step of this process and to help ensure you make
the right choices for your firm.
Before making a choice, you should decide
exactly who you want to be.

Most independence
1
2
3
4
5
Pure
independence
Independence
with platform
provider support
Affiliation with a
financial partner
Setting up a
business as part
of an established
firm or group
Joining an
existing RIA firm
The advisor opens a
firm with the help of
a financial partner,
who invests in the
business.
The advisor opens
a new office for an
established firm and
becomes the firm’s
employee.
An advisor joins an
existing RIA firm
as an employee or
potential partner.
The advisor opens a
firm and maintains
full control of the
business.
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Least independence 
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The advisor opens
a firm but uses
the services of a
platform provider
for help.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Define your business strategy
Plan
Develop your marketing strategy
The hybrid model
Part of owning your own firm is communicating
the news when the time is right and in a way
that’s founded on your business strategy. As
an independent RIA, you get more control over
communications and marketing to your clients.
Take this opportunity to revisit your current marketing
approach. You should clearly define your competitive
advantage and use it to inform your brand identity
and target client. Start vetting marketing vendors, and
think about the name of your firm as well.
If commission-based business is part
of your offer, you may not want to give
it up. The good news is, you don’t have
to. You can explore the hybrid model,
which lets you maintain both advisory and
brokerage business. If you select the hybrid
model, your BDO can introduce you to
broker-dealers you can evaluate for your
commission business.
T
ake a deeper dive into what you should
consider before making the RIA transition with
the Schwab Advisor Services white paper
Exploring Independence.
Download the white paper >
Learn more by reading the Schwab Advisor
ServicesTM white paper Understanding
the Hybrid Practice: Considerations for
Advisors in Transition.
Download the Hybrid Practice white paper >
“The most rewarding aspect
of being independent is
knowing that we own our
business. We are our brand.”
—Stephen Korving, Korving & Company
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Why
RIA
Where
to start
Business
strategy
Office
setup
Legal and
compliance
Account
conversion
Ongoing
support
Define your business strategy
Execute
Cross-check your
financial strategy
To ensure you are tracking your transition costs
and ongoing expenses, you can use the Schwab
Advisor ServicesTM RIA Economic Discovery Tool
as you execute your plan. Contact your BDO to
get access to the expanded tool.
Access the tool >
View BDO Joe Mooney’s video >
Carry out your business plan
“There’s a lot to owning your own business.
But, when [advisors] start to see what they can
ultimately achieve if they’re willing to take that next
step, then they can start to see the fruits of all the
labor they’ve put in.”
Now is the time to write job descriptions and begin
thinking about interviewing and hiring employees
to fill your organizational chart. Pick a payroll
and benefits provider, and implement your firm’s
technology platform.
—Joe Mooney, Schwab Business Development Officer
Here’s an example of some transition costs you may want to research. If you are currently associated with an
independent broker-dealer, you may be able to leverage some of your existing infrastructure, such as office
space, equipment, and supplies.
Benefits
• Set-up fees
for benefits
administration
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Marketing
and business
development
•
•
•
•
•
Logo
Brand creation
Printing
Stationery
Website
Technology
•
•
•
•
Hardware
Software
CRM
Portfolio
management and
reporting
• Financial planning
software
• Research
11
Office space,
equipment, and
supplies
Compliance
and legal
• Security deposit
• Signs
• Additional
build-out
• Furniture
• Appliances
• Employment
contract review
• New business
structure creation
• Drafting new client
agreements
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Why
RIA
Where
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Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Define your business strategy
Execute
Create marketing materials
and a PR plan
See what can be involved in
creating your website
Once you’ve selected a marketing vendor, you can
create the materials you’ll use to introduce and
promote your new firm. This is where you’ll be
working on your firm’s logo, business cards, website,
and communications and PR strategies, which can
include efforts such as identifying media targets and
channels, as well as establishing metrics and goals.
Your firm website is a key communications
hub and should highlight:
Read the Schwab Advisor Services™ public relations
toolkit to learn how to craft media pitches and news
releases, talk to reporters, and more.
View the PR toolkit >
¨¨ Your firm’s unique value proposition
¨¨ Firm mission and values
¨¨ Services and products
¨¨ Investment approach and philosophy
¨¨ Client case studies
¨¨ Background and expertise of firm principals
¨¨ Firm history and facts
¨¨ White papers, firm publications, videos, blogs
¨¨ A clear call to action with a phone number
or lead form
Consider other content to include:
¨¨ Weekly market update/commentary
¨¨ Links to your quarterly newsletter (educational
articles, firm updates, and related investment
and market news)
¨¨ Links to firm-authored articles on areas
of expertise
¨¨ Links to article reprints of interest (firmor market-related)
View Kimberly Sanders’s video >
“There’s so many different options for independence.
That’s why we spend so much time up front trying to
figure out ‘What do you love doing? What is it you’re
trying to accomplish? What’s missing today?’ ”
—Kimberly Sanders, Business Consultant,
Schwab Advisor Services
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Display your firm’s logo and website URL on
your LinkedIn profile. This dynamic online
presence connects your firm with clients,
prospects, and centers of influence.
¨¨ Make your website mobile-friendly to support
the increasing number of searches made from
mobile devices.
¨¨ Include a LinkedIn follow button to allow a
client or prospect to follow your LinkedIn
company page easily.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Define your business strategy
Checklist
Plan
Identify your goals and vision
Complete a pro forma analysis
Research various advisory models
Complete your business plan
Develop your marketing strategy
Execute
Cross-check your financial strategy
Carry out your business plan
Create your marketing materials
Ask your Schwab Business
Development Officer about
the different advisory models
available to you and the types
of transition costs you should
expect. Contact a BDO online
at schwabadvisorservices.com
or at 877-687-4085 >
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Prepare for legal and compliance
Plan
Prepare for
legal and
compliance
With the freedom and opportunity of
the RIA model come additional legal
and regulatory responsibilities. That
may sound like more compliance
work for you, but it doesn’t have
to be. When you make thoughtful
and deliberate decisions during the
transition, you can position your firm
for long-term success.
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Your Schwab Advisor ServicesTM Business
Development Officer (BDO) can connect you with
legal and compliance experts who can assess
where you are and help guide you from a legal
perspective throughout the transition. You can
rely on these experts, who’ve been down this path
to independence before. They’ll assist you with
everything from determining your firm’s structure
to reviewing existing contracts and compliance
policies to guiding you through the disclosure and
form filing it takes to become an RIA.
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Why
RIA
Where
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Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Prepare for legal and compliance
Plan
Assess your goals
with legal counsel
Review employment
agreements, and form
an exit strategy
After you choose your counsel, you should
discuss your firm’s vision and your history to
date. It’s important that counsel understands
your business in order to advise you during and
beyond the transition.
Restrictions in your agreement with your current
firm and related compensation may dictate when
and how you transition. By formulating an exit
strategy, you can make the transition smoother
and avoid any legal concerns.
Transition tip: Keep your plans confidential. One
common way that management discovers departure
plans is through information being shared too early.
Even well-meaning friends, family members, and
business associates can inadvertently disclose your
plans to leave. Your BDO and legal counsel can help
you determine the right time to announce your plans.
Legal should review some of the agreements
focusing on:
• Training agreements
• Confidentiality restrictions
• Promissory notes or other forgivable
loan arrangements
• Non-solicitation and non-compete agreements
Determine if the Broker
Protocol is available to you
View legal expert Brian Hamburger’s video series >
View this series of videos from legal expert Brian Hamburger,
and learn more about the questions you should be asking to
develop a comprehensive legal strategy for your transition.
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Many advisors are now in a position to consider
starting or joining an RIA firm. The Broker
Protocol, created in 2004 by some of the major
wirehouses, attempts to avoid costly lawsuits and
temporary restraining orders against departing
advisors. Please look at the protocol guidelines
as well as any relevant agreements you may have
with your current firm and review those with legal
counsel. Your legal counsel can help determine if
the Broker Protocol is an option for you and can
guide you through the process.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Prepare for legal and compliance
Plan
Choose your entity structure
Determine licensing
and registration
Many RIAs will select a corporation or limited
liability company (LLC) as their legal structure.
Consult your legal and tax advisor to determine
the advantages of each structure, both of which
allow for proper succession planning. It’s also
important to decide where to form your RIA and to
formalize any agreements with partners.
Legal counsel can help you understand the SEC
and state requirements and find out where to
register. Certain individuals will also need to register
as Investment Advisor Representatives and meet
state qualifications, most commonly by passing the
Series 65 examination.
Schwab Advisor ServicesTM is committed to
helping advisors stay up-to-date on the latest
industry legal matters and regulatory education.
SEC vs. state licensing
Typically, a firm must register with the
SEC if it manages $100 million or more in
assets. If it manages less than $100 million,
it must register with one or more states.
However, other factors contribute to this
determination. Your legal counsel can help
you identify what those are and where you
land when it comes to registration.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Prepare for legal and compliance
Execute
Protect your business
with insurance
Draft client agreements
Based on your firm’s specific business practices,
which will be described in your disclosure
brochure, you can create client agreements.
It’s important to obtain insurance to safeguard
your firm against common risks.
Learn more about legal and regulatory insights by
visiting the Advisor Services resource page.
Visit the webpage >
Here are some types of insurance to consider:
• General business
• Errors and omissions (E&O)
• Life
Clients come first, always
• Disability
You are dedicated to protecting your clients’
assets—and so is Schwab. Investments
custodied with Schwab are protected by SIPC
for securities and cash in the event of brokerdealer failure.
• Buyout
Create your legal and
compliance program
See additional information on how client
assets are protected at Schwab in our asset
protection brochure.
RIAs have options when it comes to managing
compliance. You can handle tasks such as
registration updates and annual reviews in-house
or turn to a third party. Work with your BDO and
legal and/or compliance counsel to determine how
to build a program that satisfies the needs of your
firm and your clients.
View the brochure >
Prepare and file disclosure
documents and forms
You’ll need to complete Parts 1 and 2 of the Form
ADV and to register individuals, typically with a
Form U4. States may require additional filings,
such as balance sheets or marketing materials.
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>
Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Prepare for legal and compliance
Checklist
Plan
Assess your goals with legal counsel
Review employment agreements, and
form an exit strategy
Determine if the Broker Protocol is
available to you
Choose your entity structure
Determine licensing and registration
Execute
Protect your business with insurance
Create your legal and compliance program
Prepare and file disclosure documents
and forms
Draft client agreements
Your Schwab Business
Development Officer can help you
make sense of the compliance,
regulatory, and legal responsibilities
of becoming an independent
RIA. Contact a BDO online at
schwabadvisorservices.com or
at 877-687-4085 >
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Set up your office
Plan
Set up your
office
As an RIA, you have a wealth of
resources open to you—so you can
run your office your way. Now is
your opportunity to create a space
that aligns with the experience you
want for your clients and staff.
“Schwab’s approach was refreshing
and different. They made a great effort
to find out what was important to us
instead of trying to sell a platform.
That really stood out for us.”
—M.J. Nodilo, Pathlight Investors
Your Business Development Officer (BDO)
can connect you with real estate partners and
furniture providers to help get your office up
and running. And Schwab Advisor ServicesTM
technology engineers are there as research guides
and sounding boards to help you find the right
solutions for you and your clients.
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Account
conversion
Office
setup
Ongoing
support
Set up your office
Plan
Define your technology needs
Search for office space
Your Schwab Advisor Services technology
engineer can help you articulate your needs
and guide you to the technology platform that
runs your front and back offices. Our engineers
bring deep experience to help you identify and
implement the integrated technology solution that
best suits your firm and your clients.
If you will need office space, you should start the
search for a location that allows you to deliver on
your business plan. Choose a real estate partner,
and visit some potential sites. You can consider
selections based on the number of employees
you plan to have and your allotted budget.
TM
Make a list of required
supplies and furnishings
Learn more about powerful and flexible technology
solutions by visiting the technology section of the
Schwab Advisor Services website.
Visit the website >
You’ll want to decide what furniture, supplies,
and hardware will make your office functional.
Your BDO can help you think through your list
and connect you with potential suppliers.
Integrated technology
Our platform combines Schwab expertise
and advanced proprietary tools with leading
third-party technology. The result is an
integrated, end-to-end solution that helps
you seamlessly run your business—from
customer relationship management (CRM)
to trade order to portfolio management.
Performance
Reporting
and Billing
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Custody
CRM
Trading and
Research
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Financial Planning
and Client
Proposals
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Set up your office
Execute
“We worked a lot of hours in the first year of that transition. But it is all paying
off now. We didn’t expect to be where we’re at this early, and we’re ready now
to set new goals and objectives for our business.”
—Chris Baker, Baker & Associates
Select and implement
technology solutions
7,000+
RIA firms served by Schwab
as of 2017—and growing
It’s time to sign agreements and schedule your
implementation and training. Depending on your
technology choices, the process can vary, but you
will get assistance with your new systems.
Our deep industry experience allows us to match
powerful insights with creative innovations for your firm.
Schwab Alliance, our customized website and mobile
platform, can help drive a seamless experience for
your clients.
View the client website demo >
Choose your space,
and set a move-in date
After you’ve narrowed your options, your real
estate partner will help you pick the appropriate
space, negotiate lease documents, and set a
move-in date with your building manager.
The Client Learning Center is a resource that can
help your clients understand how Schwab works
with you to provide excellent service.
Visit the Client Learning Center >
Equip your office
Once you’re settled, you’ll need to arrange and
outfit your office. You should negotiate pricing
with your chosen furniture provider and make
sure to allow enough time for delivery. This is
also when you set up essentials such as phone
and Internet service.
View the Schwab Advisor Center ® video >
A key technology platform for many advisors is the Schwab
Advisor Center. Watch this video to see how two advisors
leverage the features and trading solutions to run their business.
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Why
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strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Set up your office
Checklist
Plan
Define your technology needs
Search for office space
Make a list of required supplies
and furnishings
Execute
Select and implement
technology solutions
Choose your space, and set
a move-in date
Equip your office
Ask your Schwab Business
Development Officer about
what’s involved in choosing
a technology platform that
best aligns with your client
service goals and back-office
needs. Contact a BDO online at
schwabadvisorservices.com or
at 877-687-4085 >
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Why
RIA
Where
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Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Convert your accounts
Plan
Convert your
accounts
As an independent RIA, you have the
power to serve your clients in a more
customized way. Even so, you may
wonder whether they will make the
transition with you. Part of getting them
on board is using the expertise of your
custodian to drive a seamless transition.
We have an experienced team—your Schwab
Advisor Transition Services® team—dedicated
specifically to guiding you through every step of
asset transfer. They are focused on providing a
seamless and accurate conversion and can often
take on some of the process for you. That way, you
can focus on your clients.
Here is an example of how the process can work:
Sign Schwab
Advisor Serviceslevel paper work
Pre-conversion:
30–60 days
Agree on
deliverables
and timeline
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Project
planning
and training
Perform asset Provide
acceptability signature-ready
review
client forms
Obtain client signatures
on paper work, and
return to Schwab
Conversion:
2–4 weeks
Resign from
current firm
Receive introduction
to service team and
relationship manager
Tracking and follow-up:
2–6 weeks
Complete
paper work and
in-office training,
if provided
23
Open new
accounts, and
set up account
transfers
Review
progress
Transition to service team:
During and after conversion
Ongoing training
and support for
your firm
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Convert your accounts
Plan
“There are people out there who will listen and understand your needs. You don’t
have to go it alone and search for the best options without guidance.”
—David Bromelkamp, Allodium Investment Consultants
Understand your custodian’s role
A good custodian isn’t merely functional; it’s an RIA’s
biggest advocate and ally for success. Schwab, as
your custodian, can provide access to a wide range
of financial products, technology options, educational
resources, thought leadership, and industry insights—
plus business consultants who work closely with
advisors to develop business strategy.
#1
Schwab Advisor
Services leads
the industry
When it comes to market share among advisors of all
sizes, Schwab Advisor Services remains number one in the
industry for RIA custody, with over $1.3 trillion in AUM.7
Complete client asset review
Your Schwab Advisor Transition Services® team
will conduct asset acceptability reviews with you to
understand what assets will transfer.
Choose your resignation date
You want to be sure you are prepared to engage
clients after resigning from your current employer—
and you’ve determined an appropriate time with
your legal counsel. Identifying your ideal resignation
date will allow you to back into the evaluation,
planning, and execution of the transition process.
View advisor Jack Reutemann’s video >
“Our relationship with Schwab Advisor Services has
allowed us to focus on asset protection and risk
management. The pie chart doesn’t come first.
What’s best for the client comes first.”
—Jack Reutemann, Research Financial Strategies
Begin training
You will become familiar with the way your custodian
operates. Work with your Schwab Advisor Transition
Services team to ensure your staff is trained on the
Schwab Advisor ServicesTM platform, and develop
a working relationship that will allow you to get the
most out of your custodian as your RIA firm evolves.
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Why
RIA
Where
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Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Convert your accounts
Execute
“The conversion team was critical in our transition. They were in our office the day
we resigned and full time for over a week, helping with some of the paper work
and setting up new accounts.”
—Trevor Callan, Callan Capital
Resign and send
announcements
Once you deliver your letter of resignation, your
transition and legal teams can help you determine
when it’s appropriate to start publicizing your new
firm and delivering announcements to clients.
Prepare client packets
Your Schwab Advisor Transition Services® team
will help you prepare the transfer paper work and
set up what you need in order to transfer client
accounts. The forms will be signature-ready to
simplify the process.
View Chris Baker’s “Convert Your Accounts” video >
“I had done some research and expected about
70%–75% of our clients would transition with us
and move their assets over. I was pleasantly
surprised that we had closer to 95%. It was
seamless. We had no complaints at all from
any clients in this transition.”
Transfer your clients’ assets
Your Schwab Advisor Transition Services team
will track and oversee the account opening and
transferring process. That way, you have the time
and space to stay focused on your clients. Schwab
Advisor ServicesTM can provide you with materials to
help educate your clients about the RIA model and
explain the benefits it provides to you and them.
—Chris Baker, Baker & Associates
2,450+
Advisors transitioned
to the RIA model
Schwab Advisor Services is the most
experienced team in the industry—we’ve
transitioned more than 2,450 advisors to the RIA
model in the past 10 years and moved more than
481,245 client accounts.8
Elyn Davis, a transition consultant with Schwab
Advisor Services, talks about breaking down
the complexities of this process.
View the video >
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Convert your accounts
Checklist
Plan
Understand your custodian’s role
Complete client asset review
Choose your resignation date
Begin training
Execute
Resign and send announcements
Prepare client packets
Transfer your clients’ assets
Your Schwab Business
Development Officer can help
take the guesswork out of how
to prepare and guide your client
accounts through a smooth
transition. Contact a BDO online
at schwabadvisorservices.com or
at 877-687-4085 >
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Why
RIA
Where
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Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Strengthen
your practice
Once you’ve successfully made the
transition to the RIA model, your
relationship with Schwab Advisor
ServicesTM has only begun.
As you grow your business, Schwab Advisor
Services offers consulting programs, support
services to clients’ practices, and a full range of
networking and educational opportunities that
you may be able to employ. Your relationship
manager can help you determine what’s available
to you. For instance, if you choose to participate
in Schwab’s annual RIA Benchmarking Study,
you can access information about your firm’s key
business metrics and how they compare with
those of your peers. Use these metrics to evaluate
strengths and opportunities for your firm.
As our valued client, you gain immediate access
to the expertise of a dedicated service team and
a wealth of resources. This uniquely equipped
team will be with you at every step, helping you
build a strong foundation for a lasting business
with optimized operations and efficient workflows.
Have confidence in your path forward with
Schwab’s insight and guidance that have
been honed over years of industry leadership.
We keep you up-to-date on the progress of
your firm. We frequently offer ways you can
take your firm further and stay ahead of the
curve—all supported by our strong vision for
the industry’s future.
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Gain insights on the 2016 RIA Benchmarking
Study from Jon Beatty, senior vice president
of Sales and Relationship Management at
Schwab Advisor Services.
Read the press release >
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Why
RIA
Where
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Business
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Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
“The entire support team at Schwab Advisor Services has been with us every step
of the way. Now that we’ve launched, they are really an extension of our firm.
My sense was that other custodians treat this in a very transactional way, as
opposed to Schwab, which was really making a commitment to our business.”
—Dorie Fain, &Wealth Partners
You can also take advantage of Schwab Advisor
ServicesTM Insight to Action Consulting Programs,
hands-on, one-on-one consulting engagements
that turn insights in business strategy, technology,
client segmentation, marketing, and more into
actionable tactics for your firm.
In addition, with Schwab Advisor Services you have
access to some of the largest and most notable
conferences and events in the industry—including
the annual IMPACT® conference, the industry’s
leading event. When you attend the conference,
you can spark new ideas and build your professional
network in order to help you learn best practices for
growing and scaling your business.
See how RIA firms have used Insight to Action
Consulting Programs to uncover new strategic
thinking on how to run their businesses in
accordance with their goals.
Read the overview >
<
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Visit the IMPACT website to find out more about the
unparalleled networking and world-class keynote
speakers you can access at the conference.
Visit the website >
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
The moment to define
yourself with the
freedom of the RIA
model is here. As an
independent RIA, you
can move forward with
confidence—and we’ll
have your back.
Contact a BDO online at
advisorservices.schwab.com
or at 877-687-4085 to begin
developing your custom
transition plan >
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Why
RIA
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strategy
Legal and
compliance
Office
setup
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conversion
Ongoing
support
Resources
Define your business strategy
Video: Compass Wealth Management (p. 7)
http://advisorservices.schwab.com/public/advisor/nn/videos/dreambig/compass.html
Video: Chris Baker’s “Plan Your Move” (p. 8)
http://advisorservices.schwab.com/public/advisor/nn/landing/ibd_plan_your_move.html
Article: 10 Tips for Successful Transitions (p. 8)
http://advisorservices.schwab.com/public/file?cmsid=P-6242963&cv9
Demo: RIA Economic Discovery Tool (pp. 8, 11)
https://sasimulator.schwab.wallst.com/Public/PracticeProfile
White paper: Understanding the Hybrid Practice: Considerations for Advisors in Transition (p. 10)
http://advisorservices.schwab.com/public/file/P-4002185/SAS_Trans_HybridMKT_WEB021011.pdf
White paper: Exploring Independence: An Overview of the Registered Investment Advisor Model (p. 10)
http://advisorservices.schwab.com/exploringindependence
Video: Joe Mooney on what more control can mean for you (p. 11)
http://content.schwab.com/web/as/GetAnswers/#joe
Toolkit: Using Public Relations to Help Boost Awareness of the RIA Model and Your Brand (p. 12)
http://advisorservices.schwab.com/public/file/P-9798673
Video: Kimberly Sanders on articulating your vision (p. 12)
http://content.schwab.com/web/as/GetAnswers/index.html#kimberly
Prepare for legal and compliance
Video: Legal expert Brian Hamburger’s “Employment Considerations” (p. 15)
http://advisorservices.schwab.com/public/advisor/nn/videos/hamburger.html
Webpage: Advisor Services resource page (p. 17)
http://advisorservices.schwab.com/public/advisor/nn/landing/ibd_legal.html?&&aswh2015
Brochure: How Your Assets Are Protected at Schwab (p. 17)
http://www.schwab.com/public/file/P-3042070/mkt45080.pdf
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Why
RIA
Where
to start
Business
strategy
Legal and
compliance
Office
setup
Account
conversion
Ongoing
support
Resources
Set up your office
Website: Technology at Schwab Advisor ServicesTM (p. 20)
http://advisorservices.schwab.com/public/advisor/technology
Demo: Schwab Alliance website (p. 21)
http://content.schwab.com/learningcenter/video/schwaballiance.html
Website: Client Learning Center (p. 21)
http://content.schwab.com/learningcenter/
Video: Schwab Advisor Center ® (p. 21)
http://advisorservices.schwab.com/public/advisor/nn/videos/jeannie_churchill_and_colin_taylor_video.html
Convert your accounts
Video: Jack Reutemann’s “RIA Model Is Best Choice for Growing Business” (p. 24)
http://advisorservices.schwab.com/public/advisor/nn/videos/jack_reutemann.html
Video: Chris Baker’s “Convert Your Accounts” (p. 25)
http://advisorservices.schwab.com/public/advisor/nn/landing/ibd_plan_convert_accounts.html
Video: Elyn Davis on transition consulting (p. 25)
http://content.schwab.com/web/as/GetAnswers/index.html#elyn
Ongoing support
Press release: Jon Beatty on the 2016 RIA Benchmarking Study (p. 27)
http://pressroom.aboutschwab.com/press-release/schwab-advisor-services-news/10th-annual-riabenchmarking-study-charles-schwab-indicat
Article: Insight to Action Consulting Programs (p. 28)
http://advisorservices.schwab.com/public/file/P-8398488/ITAP_Sales_sheet_digital_w_schedule_121416.pdf
Website: IMPACT® conference (p. 28)
http://impact.schwab.com/
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support
Sources
1.RIA Benchmarking Insights, 2016 RIA Benchmarking Study from Charles Schwab, January–March 2016.
2.Ibid.
3. Charles Schwab internal analysis of RIA mergers and acquisitions activity, 2016.
4.The Cerulli Report: Intermediary Distribution 2016, Exhibit 2.13.
5. ACT Advisor Conversion Services Dashboard Metrics: January 2005–January 2017.
6.Annual Charles Schwab CPS benchmarking survey, 2016.
7. Charles Schwab strategy estimates, 2016.
8. See note 5 above.
LinkedIn is not affiliated with Charles Schwab and Co., Inc.
These videos are produced by Charles Schwab & Co., Inc. and are intended solely for investment professionals. The presentation is for general informational purposes only and
is not intended to provide specific financial, compliance, regulatory, or legal advice. For further information, contact professionals in their respective fields for assistance.
Schwab’s annual RIA Benchmarking Study is the largest of its kind focused exclusively on RIAs. In 2016, 1,128 firms representing nearly three-quarters of a trillion dollars
in AUM completed the survey, reflecting their experiences in 2015 as well as their annual growth rates from 2010 to 2015. The study categorizes participants into 12 peer
groups—7 wealth manager groups and 5 money manager groups—by AUM size. The results, unless otherwise noted, include all firms with at least $250 million in AUM,
representing the vast majority of total assets managed by this year’s participants. All results are self-reported and not independently verified.
The Economic Discovery Tool (Tool) is intended solely for use by investment professionals. The Tool simulates the pro forma financial results of various hypothetical scenarios
for establishing, operating, joining, and/or selling an investment advisory practice or firm and compares those simulated outcomes to various alternatives. The scenarios and
alternatives covered are not exhaustive and may not be representative of those you actually encounter. Moreover, the simulated pro forma results are materially dependent
on various assumptions and inputs, some of which are made and specified by you and some of which are static. These assumptions and inputs may not reflect actual
circumstances, and thus the Tool is inherently limited and intended for general informational purposes only. The simulated pro forma results do not reflect, and are not
guarantees of, actual or future results. Your actual results may be materially different from those simulated. Schwab makes no warranty of the accuracy or completeness of
the Tool or the simulated pro forma results and shall have no liability for your use of the Tool. The Tool is not intended to provide financial, investment, legal, tax, or regulatory
compliance advice. You are urged to consult your own professional advisors.
Experiences expressed are no guarantee of future performance or success, and they may not be representative of your experience. The above-mentioned firms and their
employees are not affiliated with or employees of Schwab unless otherwise noted. They should not be construed as a recommendation, endorsement, or sponsorship by
Schwab. The views expressed are those of the third party and are provided for informational purposes only.
MarketCounsel, LLC is not affiliated with or employed by Charles Schwab & Co., Inc.
The products, services, and/or firms should not be construed as a recommendation, endorsement, or sponsorship by Charles Schwab & Co., Inc. or any of its officers, directors,
employees, or affiliates of these products, services, and/or firms. The firms are independent and not affiliated with or employees of Schwab. You must decide whether to hire
these firms and the appropriateness of their services for you or your firm. Schwab does not supervise these firms and takes no responsibility to monitor the services, advice, or
consultation they provide to you.
Third-party trademarks are the property of their respective owners and used with permission.
Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.
©2017 Charles Schwab & Co., Inc. (“Schwab”). All rights reserved. Member SIPC. Schwab Advisor ServicesTM serves independent investment advisors and includes the custody,
trading, and support services of Schwab.
AHA (0517-YDUR) ELC88127-02 (05/17)
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